Reflection and Application Report

2-*

Differences in Economic Development

• Gross National Product (GNP)
• Common yardstick for measuring economic activity.
• Measures total value of goods and services produced annually.
• Doesn’t consider the differences in costs of living.
• Purchasing Power Parity.
• Uses U.S. cost of living for basis of adjustment among countries.

Both give

a static

picture of

development

2-*

PPP Index and GNP Data for Selected Countries 2003

Table 2.1